1. 1 DOE/FE Co-Funded Drilling Technologies Roy Long, Oil Upstream Product Manager National Energy Technology Laboratory NPC Drilling Technologies Workshop January 30, 2003

2. 2 Partnership Approach  Careful Planning with Significant Industry Input  Technology roadmaps; advisory committees; consortiums; merit reviews.  Cost-shared R&D conducted with partners  Industry; federal agencies; National labs; universities.  Modest gas program budget  Approximately $30 Million/year  Small business program  Risk reduction for innovative technologies  Technology transfer  Successful field demonstrations; PTTC; Web Site; workshops; Gas TIPS.

3. 3 High Speed Communications Up Drill Pipe (“Intellipipe” - Grant Prideco/Novatek) Steel drill pipe with high speed data communication capability 1 million bits/sec = 100,000 times faster than existing technology Field test at RMOTC Feb 03

4. 4 Cost Effective Composite Drill Pipe (Adv. Composite Products & Technology)  Half weight of steel  Extend rig fleet  Ultra-short radius use  High speed data capable  Small diameter field test completed Nov 02 Oklahoma  Large diameter field test  Spring 03

5. 5 Arctic Drilling/Production Platform (Maurer/Anadarko)  Good for environment (reduced footprint)  Good for industry (year round drilling)  1/2 scale platform designed & built  Moved to AK in late December 2002

6. 6 Advanced Materials By Microwave Processing (Penn State and Dennis Tool Company) 30% Stronger Composite Metals Able to Sinter Tungsten Carbide with Diamond Composite More Ductile = Better Impact Resistance Higher Heat Conductivity IMPROVED IMPACT STRENGTH AND HIGHER HEAT CONDUCTIVITY Microwave Sintered Conventionally Sintered

7. 7 Mudpulse Drilling System (Tempress Technologies) Oscillator Valve 8-3/4” Prototype Suction Pulse Train Seismic Lookahead Detail http://www.tempresstech.com/hydropulse.htm

8. 8 LWSA for Dual-Gradient Drilling JIP (Maurer Technology) http://www.maurertechnology.com/DGD/index-DGD.shtml http://www.conoco.com/about/major/special/subsea.asp

9. 9 Advanced Mudhamer Project (Novatek) http://www.novatekonline.com/ids.html

10. 10 High Pressure Coiled-Tubing Drilling System (Maurer ) Applications Reentering old wells Hard/Slow Drilling Deep drilling

11. 11 Laser Drilling (Gas Technology Institute)

12. 12 High Strength and Faster Drilling TSP Diamond Cutters (Technology International)  NEW ENDURUS TM TSP CUTTER  Thermally Stable Polycrystalline Diamond Brazed to a Tungsten Carbide Substrate  Will Lower Hard and Abrasive Rock Drilling Costs

13. 13 Deep Trek Technology to dramatically decrease cost of drilling below 20,000’  Resource  7% U.S. production 1999 - 14% in 2010  High temperature (350°F)  High pressure (10,000 psi)  Highly corrosive (H 2 S)  R&D Areas  High-speed wellbore data transmission  High-performance DCS systems  High temp/ high pressure sensors  Low friction/wear-resistant coating/materials  Expected Benefits, by 2015  Drilling time reduced by 33%  30 TCF economically recoverable gas

14. 14 Deep Trek Status  6 active projects worth $8M ($5M DOE)- Awarded Sep 02  APS Tech Inc.: Drilling vibration monitoring & control  E-Spectrum Tech: HT (200°C) wireless electromagnetic telemetry  Penn State: Microwave process for seamless coiled tubing  Pinnacle Tech: Deep completion stimulation technologies  Terra Tek: Test emerging diamond bits & HT/HP fluids  Schlumberger Data & Consulting: Benchmarking deep drilling costs  Round 2 proposals look very promising (Review Mar 03)  Need HT/HP microprocessors & integrated circuitry  More information at: http://www.fossil.energy.gov/techline/tl_deeptrek_2002sel.shtml

15. 15 Microhole Technologies (Los Alamos National Lab) http://www.sandia.gov/ngotp